People’s Park Centre raises Reserve Price in first en bloc effort

SINGAPORE (EDGEPROP) – Mixed-use redevelopment site People’s Park Centre has raised its Reserve Price from $1.3 billion to $1.35 billion and has also agreed on the method of apportionment for its first en bloc sale attempt. The Straits Times reported that the majority of owners who attended the extraordinary general meeting on Jan 9 passed the resolutions for the changes.

People's Park Centre

Image credit: Wikimedia Commons

People’s Park Centre is yet to get the 80 per cent mandate for the en bloc sale of the mixed-use redevelopment site but has one-year to get buy-in from the majority of owners.

Mr Lee Chin Chee, spokesman for the Collective Sale Committee (CSC) said that his Committee hopes to have the legally required support for the sale within four months in order to launch the en bloc sale by the middle of this year. Mr Lee added that the Reserve Price has been upped from a 41 per cent premium overvaluation to 45 per cent premium to get support for the Collective Sale effort quickly.

“The method of apportionment is structured as such: 80 per cent is based on the valuation of the units, 10 per cent on the area of the units, and 10 per cent on share value,” he added.

Subsidiary proprietors who are apartment owners now will get between $1.885 million and $2.683 million under this apportionment method. While office owners, between $432,000 and $4.431 million, and shop owners, from $267,000 to $16.4 million.

The owner of the carpark at People’s Park Centre stands to gain $56.7 million, Mr Lee said.

But some owners have objected to the sale. “Only 62 shop units had their sales proceeds adjusted higher by a total of $9 million. The other 639 units remained unchanged. That is the main (source of) disgruntlement among those objecting. Some also think the reserve price is too low,” Mr Lee added.

People’s Park Centre is a mixed-use development, strata-titled development located along Upper Cross Street in Outram, Singapore. It has a mix of residential units, shops and offices. Constructed on the land sold in the first Government Land Sales (GLS) programme, People’s Park Centre marks an important chapter in the architectural history of post-independence Singapore. Completed in 1973, the centre is now slated for redevelopment.

The Straits Times reported in early last year that a CSC was formed for the collective sale of People’s Park Complex on March 5, 2018, at an extraordinary general meeting following “unanimous consensus”, and that it intends to appoint a real estate firm soon.

The mixed-use redevelopment site sits on a 96,000 sq ft site, with a gross floor area of about 820,000 sq ft. It is zoned commercial under the current masterplan. The development, which has 120 apartments, 256 offices, 324 shops and a carpark, has more than 50 years left on its lease.

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